Download - Surya Reliance Fresh
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 111
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 211
RELIANCE
Growth has no limit at Reliance I keep revising my vision Only
when you can dream it you can do it
Dhirubhai H Ambani
Founder Chairman Reliance GroupDecember 28 1932 - July 6 2002
RELIANCE GROUP
The Reliance Group founded by Dhirubhai H Ambani (1932-2002) is Indias largest private
sector enterprise with businesses in the energy and materials value chain Groups annual
revenues are in excess of USD 27 billion The flagship company Reliance Industries Limited is aFortune Global 500 company and is the largest private sector company in India
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance Starting with textiles in the late seventies Reliance pursued a strategy of backward
vertical integration - in polyester fibre intermediates plastics petrochemicals petroleum
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 311
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain
The Groups activities span exploration and production of oil and gas petroleum refining and
marketing petrochemicals (polyester fibre intermediates plastics and chemicals) textiles and
retail
Reliance enjoys global leadership in its businesses The Group exports products in excess of USD
15 billion to more than 100 countries in the world There are more than 25000 employees on
the rolls of Group Companies Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and
Reliance Industrial Infrastructure Limited
Reliance Industries Limited is India s largest private sector conglomerate (and second largest
overall) with an annual turnover of US$ 359 billion and profit of US$ 485 billion for the fiscal
year ending in March 2008 making it one of Indias private sector Fortune Global 500
companies being ranked at 206th position (2008) [1] It was founded by the Indian industrialist
Dhirubhai Ambani in 1966 Ambani has been a pioneer in introducing financial instruments like
fully convertible debentures to the Indian stock markets Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhais
ability to manipulate the levers of a controlled economy to his advantage
Though the companys oil-related operation forms the core of its business it has diversified its
operations in recent years After severe differences between the founders two sons Mukesh
Ambani and Anil Ambani the group was divided between them in 2006 In September 2008
Reliance Industries was the only Indian firm featured in the Forbes s list of worlds 100 most respected companies
Subsidiaries of RIL
Reliance Petroleum
Ranger Farms Limited
Retail Concepts and Services (India) Private Limited
Reliance Retail
Reliance Global Management Services (P) Limited
Reliance Biopharmaceuticals
Reliance Ghatraj Services
Reliance Engineering Associates (P) Limited
Reliance Retail Limited
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 411
Reliance is gearing up to revolutionize the retailing industry in India Towards this end Reliance
is aggressively working on introducing a pan-India network of retail outlets in multiple formats
A world class shopping environment state of art technology a seamless supply chaininfrastructure a host of unique value-added services and above all unmatched customer
experience is what this initiative is all about
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer both in quality and quantity will be an integral feature of this project By
creating value at all levels we will actively endeavour to contribute to Indias growth
The project will boast of a seamless supply chain infrastructure unprecedented even by world
standards Through multiple formats and a wide range of categories Reliance is aiming to touch
almost every Indian customer and supplier
With a vision to generate inclusive growth and prosperity for farmers vendor partners small
shopkeepers and consumers Reliance Retail Limited (RRL) a subsidiary of RIL was set up to lead
Reliance Grouprsquos foray into organized retail
With a 27 share of world GDP retail is a significant contributor to overall economic activity
across the world Of this organized retailing contributes between 20 to 55 in various
developing markets The Indian retail industry is pegged at $ 300 billion and growing at over
13 per year Of this presently organized retailing is about 5 This is expected to grow to 10
by 2011 RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India which includes a multi-format store strategy of opening neighbourhood
convenience stores hypermarkets and specialty and wholesale stores across India
RRL launched its first store in November 2006 through its convenience store format lsquoReliance
Freshrsquo Since then RRL has rapidly grown to o perate 590 stores across 13 states at the end of FY
2007-08 RRL launched its first lsquoReliance Digitalrsquo store in April 2007 and its first and Indiarsquos
largest hypermarket lsquoReliance Martrsquo in Ahmadabad in August 2007 This year RRL has also
launched its first few specialty stores for apparel (Reliance Trends) footwear (Reliance
Footprints) jewellery (Reliance Jewels) books music and other lifestyle products (Reliance
Timeout) auto accessories and service format (Reliance AutoZone) and also an initiative in the
health and wellness business through lsquoReliance Wellnessrsquo In each of these store formats RRL is
offering a unique set of products and services at a value price point that has not been available
so far to the Indian consumer Overall RRL is well positioned to rapidly expand its existing
network of 590 stores which operate in 57 cities
During the year RRL also focused on building strong relationships in the agri-business value
chain and has commenced marketing fruits vegetables and staples that the company sources
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 511
directly to wholesalers and institutional customers RRL provides its customers with high quality
produce that has better shelf life and more consistent quality than was available earlier RRL has
made significant progress in establishing state-of-the-art staples processing centres and expects
to make them operational by May 2008
Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner
Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-
08 RRL established key joint ventures with international partners in apparel optical and office
products businesses Further RRL will continue to seek synergistic opportunities with other
international players as well This year RRL will continue its focus on rapid expansion of the
existing and other new formats across India
Popular Profiles at Reliance Retail
Management team
Name Designation
Mr Mukesh Ambani ChairmanampManaging Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation ampSales and NSO
Devandra Chawla Vice-President-Business Head Merchandise
Head
Zubin Nowrojee Mangement State Head Category
Formats of Reliance RETAIL
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 211
RELIANCE
Growth has no limit at Reliance I keep revising my vision Only
when you can dream it you can do it
Dhirubhai H Ambani
Founder Chairman Reliance GroupDecember 28 1932 - July 6 2002
RELIANCE GROUP
The Reliance Group founded by Dhirubhai H Ambani (1932-2002) is Indias largest private
sector enterprise with businesses in the energy and materials value chain Groups annual
revenues are in excess of USD 27 billion The flagship company Reliance Industries Limited is aFortune Global 500 company and is the largest private sector company in India
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance Starting with textiles in the late seventies Reliance pursued a strategy of backward
vertical integration - in polyester fibre intermediates plastics petrochemicals petroleum
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 311
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain
The Groups activities span exploration and production of oil and gas petroleum refining and
marketing petrochemicals (polyester fibre intermediates plastics and chemicals) textiles and
retail
Reliance enjoys global leadership in its businesses The Group exports products in excess of USD
15 billion to more than 100 countries in the world There are more than 25000 employees on
the rolls of Group Companies Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and
Reliance Industrial Infrastructure Limited
Reliance Industries Limited is India s largest private sector conglomerate (and second largest
overall) with an annual turnover of US$ 359 billion and profit of US$ 485 billion for the fiscal
year ending in March 2008 making it one of Indias private sector Fortune Global 500
companies being ranked at 206th position (2008) [1] It was founded by the Indian industrialist
Dhirubhai Ambani in 1966 Ambani has been a pioneer in introducing financial instruments like
fully convertible debentures to the Indian stock markets Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhais
ability to manipulate the levers of a controlled economy to his advantage
Though the companys oil-related operation forms the core of its business it has diversified its
operations in recent years After severe differences between the founders two sons Mukesh
Ambani and Anil Ambani the group was divided between them in 2006 In September 2008
Reliance Industries was the only Indian firm featured in the Forbes s list of worlds 100 most respected companies
Subsidiaries of RIL
Reliance Petroleum
Ranger Farms Limited
Retail Concepts and Services (India) Private Limited
Reliance Retail
Reliance Global Management Services (P) Limited
Reliance Biopharmaceuticals
Reliance Ghatraj Services
Reliance Engineering Associates (P) Limited
Reliance Retail Limited
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 411
Reliance is gearing up to revolutionize the retailing industry in India Towards this end Reliance
is aggressively working on introducing a pan-India network of retail outlets in multiple formats
A world class shopping environment state of art technology a seamless supply chaininfrastructure a host of unique value-added services and above all unmatched customer
experience is what this initiative is all about
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer both in quality and quantity will be an integral feature of this project By
creating value at all levels we will actively endeavour to contribute to Indias growth
The project will boast of a seamless supply chain infrastructure unprecedented even by world
standards Through multiple formats and a wide range of categories Reliance is aiming to touch
almost every Indian customer and supplier
With a vision to generate inclusive growth and prosperity for farmers vendor partners small
shopkeepers and consumers Reliance Retail Limited (RRL) a subsidiary of RIL was set up to lead
Reliance Grouprsquos foray into organized retail
With a 27 share of world GDP retail is a significant contributor to overall economic activity
across the world Of this organized retailing contributes between 20 to 55 in various
developing markets The Indian retail industry is pegged at $ 300 billion and growing at over
13 per year Of this presently organized retailing is about 5 This is expected to grow to 10
by 2011 RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India which includes a multi-format store strategy of opening neighbourhood
convenience stores hypermarkets and specialty and wholesale stores across India
RRL launched its first store in November 2006 through its convenience store format lsquoReliance
Freshrsquo Since then RRL has rapidly grown to o perate 590 stores across 13 states at the end of FY
2007-08 RRL launched its first lsquoReliance Digitalrsquo store in April 2007 and its first and Indiarsquos
largest hypermarket lsquoReliance Martrsquo in Ahmadabad in August 2007 This year RRL has also
launched its first few specialty stores for apparel (Reliance Trends) footwear (Reliance
Footprints) jewellery (Reliance Jewels) books music and other lifestyle products (Reliance
Timeout) auto accessories and service format (Reliance AutoZone) and also an initiative in the
health and wellness business through lsquoReliance Wellnessrsquo In each of these store formats RRL is
offering a unique set of products and services at a value price point that has not been available
so far to the Indian consumer Overall RRL is well positioned to rapidly expand its existing
network of 590 stores which operate in 57 cities
During the year RRL also focused on building strong relationships in the agri-business value
chain and has commenced marketing fruits vegetables and staples that the company sources
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 511
directly to wholesalers and institutional customers RRL provides its customers with high quality
produce that has better shelf life and more consistent quality than was available earlier RRL has
made significant progress in establishing state-of-the-art staples processing centres and expects
to make them operational by May 2008
Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner
Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-
08 RRL established key joint ventures with international partners in apparel optical and office
products businesses Further RRL will continue to seek synergistic opportunities with other
international players as well This year RRL will continue its focus on rapid expansion of the
existing and other new formats across India
Popular Profiles at Reliance Retail
Management team
Name Designation
Mr Mukesh Ambani ChairmanampManaging Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation ampSales and NSO
Devandra Chawla Vice-President-Business Head Merchandise
Head
Zubin Nowrojee Mangement State Head Category
Formats of Reliance RETAIL
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 311
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain
The Groups activities span exploration and production of oil and gas petroleum refining and
marketing petrochemicals (polyester fibre intermediates plastics and chemicals) textiles and
retail
Reliance enjoys global leadership in its businesses The Group exports products in excess of USD
15 billion to more than 100 countries in the world There are more than 25000 employees on
the rolls of Group Companies Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail limited) and
Reliance Industrial Infrastructure Limited
Reliance Industries Limited is India s largest private sector conglomerate (and second largest
overall) with an annual turnover of US$ 359 billion and profit of US$ 485 billion for the fiscal
year ending in March 2008 making it one of Indias private sector Fortune Global 500
companies being ranked at 206th position (2008) [1] It was founded by the Indian industrialist
Dhirubhai Ambani in 1966 Ambani has been a pioneer in introducing financial instruments like
fully convertible debentures to the Indian stock markets Ambani was one of the first
entrepreneurs to draw retail investors to the stock markets Critics allege that the rise of
Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhais
ability to manipulate the levers of a controlled economy to his advantage
Though the companys oil-related operation forms the core of its business it has diversified its
operations in recent years After severe differences between the founders two sons Mukesh
Ambani and Anil Ambani the group was divided between them in 2006 In September 2008
Reliance Industries was the only Indian firm featured in the Forbes s list of worlds 100 most respected companies
Subsidiaries of RIL
Reliance Petroleum
Ranger Farms Limited
Retail Concepts and Services (India) Private Limited
Reliance Retail
Reliance Global Management Services (P) Limited
Reliance Biopharmaceuticals
Reliance Ghatraj Services
Reliance Engineering Associates (P) Limited
Reliance Retail Limited
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 411
Reliance is gearing up to revolutionize the retailing industry in India Towards this end Reliance
is aggressively working on introducing a pan-India network of retail outlets in multiple formats
A world class shopping environment state of art technology a seamless supply chaininfrastructure a host of unique value-added services and above all unmatched customer
experience is what this initiative is all about
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer both in quality and quantity will be an integral feature of this project By
creating value at all levels we will actively endeavour to contribute to Indias growth
The project will boast of a seamless supply chain infrastructure unprecedented even by world
standards Through multiple formats and a wide range of categories Reliance is aiming to touch
almost every Indian customer and supplier
With a vision to generate inclusive growth and prosperity for farmers vendor partners small
shopkeepers and consumers Reliance Retail Limited (RRL) a subsidiary of RIL was set up to lead
Reliance Grouprsquos foray into organized retail
With a 27 share of world GDP retail is a significant contributor to overall economic activity
across the world Of this organized retailing contributes between 20 to 55 in various
developing markets The Indian retail industry is pegged at $ 300 billion and growing at over
13 per year Of this presently organized retailing is about 5 This is expected to grow to 10
by 2011 RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India which includes a multi-format store strategy of opening neighbourhood
convenience stores hypermarkets and specialty and wholesale stores across India
RRL launched its first store in November 2006 through its convenience store format lsquoReliance
Freshrsquo Since then RRL has rapidly grown to o perate 590 stores across 13 states at the end of FY
2007-08 RRL launched its first lsquoReliance Digitalrsquo store in April 2007 and its first and Indiarsquos
largest hypermarket lsquoReliance Martrsquo in Ahmadabad in August 2007 This year RRL has also
launched its first few specialty stores for apparel (Reliance Trends) footwear (Reliance
Footprints) jewellery (Reliance Jewels) books music and other lifestyle products (Reliance
Timeout) auto accessories and service format (Reliance AutoZone) and also an initiative in the
health and wellness business through lsquoReliance Wellnessrsquo In each of these store formats RRL is
offering a unique set of products and services at a value price point that has not been available
so far to the Indian consumer Overall RRL is well positioned to rapidly expand its existing
network of 590 stores which operate in 57 cities
During the year RRL also focused on building strong relationships in the agri-business value
chain and has commenced marketing fruits vegetables and staples that the company sources
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 511
directly to wholesalers and institutional customers RRL provides its customers with high quality
produce that has better shelf life and more consistent quality than was available earlier RRL has
made significant progress in establishing state-of-the-art staples processing centres and expects
to make them operational by May 2008
Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner
Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-
08 RRL established key joint ventures with international partners in apparel optical and office
products businesses Further RRL will continue to seek synergistic opportunities with other
international players as well This year RRL will continue its focus on rapid expansion of the
existing and other new formats across India
Popular Profiles at Reliance Retail
Management team
Name Designation
Mr Mukesh Ambani ChairmanampManaging Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation ampSales and NSO
Devandra Chawla Vice-President-Business Head Merchandise
Head
Zubin Nowrojee Mangement State Head Category
Formats of Reliance RETAIL
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 411
Reliance is gearing up to revolutionize the retailing industry in India Towards this end Reliance
is aggressively working on introducing a pan-India network of retail outlets in multiple formats
A world class shopping environment state of art technology a seamless supply chaininfrastructure a host of unique value-added services and above all unmatched customer
experience is what this initiative is all about
The retail initiative of Reliance will be without a parallel in size and spread and make India
proud Ensuring better returns to Indian farmers and manufacturers and greater value for the
Indian consumer both in quality and quantity will be an integral feature of this project By
creating value at all levels we will actively endeavour to contribute to Indias growth
The project will boast of a seamless supply chain infrastructure unprecedented even by world
standards Through multiple formats and a wide range of categories Reliance is aiming to touch
almost every Indian customer and supplier
With a vision to generate inclusive growth and prosperity for farmers vendor partners small
shopkeepers and consumers Reliance Retail Limited (RRL) a subsidiary of RIL was set up to lead
Reliance Grouprsquos foray into organized retail
With a 27 share of world GDP retail is a significant contributor to overall economic activity
across the world Of this organized retailing contributes between 20 to 55 in various
developing markets The Indian retail industry is pegged at $ 300 billion and growing at over
13 per year Of this presently organized retailing is about 5 This is expected to grow to 10
by 2011 RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India which includes a multi-format store strategy of opening neighbourhood
convenience stores hypermarkets and specialty and wholesale stores across India
RRL launched its first store in November 2006 through its convenience store format lsquoReliance
Freshrsquo Since then RRL has rapidly grown to o perate 590 stores across 13 states at the end of FY
2007-08 RRL launched its first lsquoReliance Digitalrsquo store in April 2007 and its first and Indiarsquos
largest hypermarket lsquoReliance Martrsquo in Ahmadabad in August 2007 This year RRL has also
launched its first few specialty stores for apparel (Reliance Trends) footwear (Reliance
Footprints) jewellery (Reliance Jewels) books music and other lifestyle products (Reliance
Timeout) auto accessories and service format (Reliance AutoZone) and also an initiative in the
health and wellness business through lsquoReliance Wellnessrsquo In each of these store formats RRL is
offering a unique set of products and services at a value price point that has not been available
so far to the Indian consumer Overall RRL is well positioned to rapidly expand its existing
network of 590 stores which operate in 57 cities
During the year RRL also focused on building strong relationships in the agri-business value
chain and has commenced marketing fruits vegetables and staples that the company sources
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 511
directly to wholesalers and institutional customers RRL provides its customers with high quality
produce that has better shelf life and more consistent quality than was available earlier RRL has
made significant progress in establishing state-of-the-art staples processing centres and expects
to make them operational by May 2008
Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner
Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-
08 RRL established key joint ventures with international partners in apparel optical and office
products businesses Further RRL will continue to seek synergistic opportunities with other
international players as well This year RRL will continue its focus on rapid expansion of the
existing and other new formats across India
Popular Profiles at Reliance Retail
Management team
Name Designation
Mr Mukesh Ambani ChairmanampManaging Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation ampSales and NSO
Devandra Chawla Vice-President-Business Head Merchandise
Head
Zubin Nowrojee Mangement State Head Category
Formats of Reliance RETAIL
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 511
directly to wholesalers and institutional customers RRL provides its customers with high quality
produce that has better shelf life and more consistent quality than was available earlier RRL has
made significant progress in establishing state-of-the-art staples processing centres and expects
to make them operational by May 2008
Through the year RRL also expanded its supply chain infrastructure The Company is fully geared to meet the requirements of its rapidly growing store network in an efficient manner
Recognizing that strategic alliances are going to be a key driver to its retail business in FY 2007-
08 RRL established key joint ventures with international partners in apparel optical and office
products businesses Further RRL will continue to seek synergistic opportunities with other
international players as well This year RRL will continue its focus on rapid expansion of the
existing and other new formats across India
Popular Profiles at Reliance Retail
Management team
Name Designation
Mr Mukesh Ambani ChairmanampManaging Director
Nikhil R Meshwani Executive Director
Hital R Meshwani Executive Director
Madhumita Mohanti Deputy General Manager
Akashay Lokhande Area Manager-Operation ampSales and NSO
Devandra Chawla Vice-President-Business Head Merchandise
Head
Zubin Nowrojee Mangement State Head Category
Formats of Reliance RETAIL
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 611
Reliance Fresh
Reliance Mart
Reliance Digital
Reliance Trendz
Reliance Footprint
Reliance Wellness
Reliance Jewels
Reliance Timeout and Reliance Super
RELIANCE fRESH
APKA FRESH APKE PADAOS ME
Reliance fresh is the retail chain division of reliance industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest rs 25000 crores in
the next 4 years in their retail division and plans to begin retail stores in 784 cities across thecountry The reliance fresh supermarket chain is rilrsquos rs 25000 crore venture and it plans to add
more stores across different g and eventually have a pan-India footprint by year 2011 The
super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and dairy
products and also will sport a separate enclosure and supply-chain for non-vegetarian products
Besides the stores would provide direct employment to 5 lakh young Indians and indirect job
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 711
opportunities to a million people according to the company The company also has plans to
train students and housewives in customer care and quality services for part-time jobs
BACK GROUND
We can see many examples of businesses where first we grow and then think of expanding but
Reliance is quite different Reliance has developed such huge amount of resources and capital
over the years that whenever it steps into any segment it is not required to wait for growing
signal thatrsquos why it always thinks of expanding without any boundaries Reliance retail is next
Step by RIL which will be a pan India project
Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by
Mukesh Ambani Reliance has entered into this segment by opening new retail stores into
almost every metropolitan and regional area of India Reliance plans to invest Rs 25000 crores
in the next 4 years in their retail division and plans to begin retail stores in 784 cities across the
country The Reliance Fresh supermarket chain is RILrsquos Rs 25000 crore venture and it plans to
add more stores across different g and eventually have a pan-India footprint by year 2011The super marts will sell fresh fruits and vegetables staples groceries fresh juice bars and
dairy products and also will sport a separate enclosure and supply-chain for non-vegetarian
products Besides the stores would provide direct employment to 5 lakh young Indians and
indirect job opportunities to a million people according to the company The company also has
plans to train students and housewives in customer care and quality services for part-time jobs
The company is planning on opening new stores with store-size varying from 1500 sq ft to
3000 sq ft which will stock fresh fruits and vegetables staples FMCG products and dairy
products Each store is said to be within a radius of 1-2 km of each other in relation to the
concept of a neighbor store However this is only the entry roll-out that the company has
planned Bangalore is said to have 40 stores in all by the end of the year
In a dramatic change due circumstances prevailing in UP West Bengal and Orissa It was
mentioned recently in News Dailies that Reliance Retail is moving out stocking Reliance Retail
has decided to minimize its exposure in the fruit and vegetable business and position Reliance
Fresh as a pure play super market focusing on categories like food FMCG home consumer
durables IT wellness and auto accessories with food accounting for the bulk of the business
The company may not stock fruit and vegetables in some states Orissa being one of them
Though Reliance Fresh is not exiting the fruit and vegetable business altogether it has decided
not to compete with local vendors partly due to political reasons and partly due to its inability
to create a robust supply chain This is quite different from what the firm had originally
planned When the first Reliance Fresh store opened in Hyderabad last October not only didthe company said the storersquos main focus would be fresh produce like fruits and vegetables at a
much lower price but also spoke at length about its ldquofarm-to-forkrsquorsquo theory The idea the
company spoke about was to source from farmers and sell directly to the consumer removing
middlemen out of the way
FARM TO FORK
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 811
The Reliance retail company sources say it is setting aside Rs 50000 crore to build its
farm-to-fork linkage Reliance has drawn up plans for a presence in 784 towns and 6000
mandi (wholesale market) towns with 1600 rural business hubs to service these It has
already rolled out 177 Reliance Fresh stores across major towns in 11 states According
to a company report RIL is targeting a turnover of Rs 40000 crore in the next few years
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 911
TRADITIONAL MODEL OF RETAIL RELIANCE ldquoFARM
TO FORKrdquo
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1011
Reliance Fresh SWOTThe Indian retail market accounted for $ 200 billions Food accounts for over two-thirds
of the $200-billion Indian retail market Yet it has seen less than 1 per cent penetration
by modern retail so farReliance industries which always looking for new business opportunities just started a
new era with its introduction of new concept stores named Reliance Fresh with opening
convince store in high streets of Banjara hills of Hyderabad Reliance Fresh is very
different from what modern retail has offered in India so far and with this reliance is
planning to establish strong retail network in India in food and farm sector They have
started with new eleven stores in the last week and they are thinking to add 100 more
stores to their feather by the end of this year
Letrsquos do a SWOT analysis on the Reliance Fresh
Strengths
Reliance is the first into enter into this unorganized sector of vegetables and fruits
According to them its intentions to have100 farm fresh foods in their new retail
stores It is also adding shortly a juice bar and even a large counter for puja flowers In
fact over 60 per cent of the floor space has been dedicated to fresh fruits and
vegetables the rest to other food products like staples spices bakery etc But reliance
has decided not to add any bar soap or toothpaste and detergent in its shelves So byusing this strategy they are positioning themselves different from other players of the
industries like Food world Big Bazaar and Nilgiris But over come the short comings of
these specialized stores they are also introducing new Reliance full-fledged supermarket
called Shakhari Bhandar which offers each and everything from the staple to soap Most
of the staples are under its own private label brand mdash lsquoReliance Selectrsquo There is a 500g
channa dal pack priced at Rs 28 a 500g urad dal pack for R s 39 all under Reliancersquos
own brand Excepting a few packets of Nestlersquos Maggi or MTRrsquos masalas or Pepsirsquos Lays
chips there is very little shelf space given to the big brand owners in the country
Reason private labels offer far better profit margin to the retailer than branded
products of FMCG companies Most of these outlets will need only 2000-5000 sq ft A
supermarket may need as much as 8000-10000 sq ft
Weakness
This is definitely an interesting business venture but it may miss out on the opportunity
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores
832019 Surya Reliance Fresh
httpslidepdfcomreaderfullsurya-reliance-fresh 1111
to capture a greater share of the customerrsquos wallet For customers too this could be
irksome as they would have to visit another store to pick up essentials Reliance could
easily fix this problem by adding a few small counters for some basic non-food
products According to their official this format is not final one they are accepting the
new changes which are required to attract the large number of customers
Opportunities
Reliance wants to build a high-profitability business and food is perhaps the best
venture to start That is because the Indian food supply chain is grossly inefficient
There are several intermediaries each of whom adds his own profit margin to the cost
Besides there is huge wastage in transit This offers potential for savings and profits
To reduce the cost and increase the profit it has been sourcing out its requirements
from the farmers For example the leafy vegetables brinjals tomatoes and green
chilies in the Banjara Hills outlet were sourced directly from farmers in Vantimamdi
Chevella and nearby mandals in Ranga Reddy district of Andhra Pradesh The supply
chain already has been backed by few hundred farmers the number is estimated to
touch million in next five years The main aim of the reliance is to eliminate the
intermediaries in the sector and reduce the cost Smaller stores have two advantages
They bring down the cost of real estate (and increase profits) It is easier to find space
for small convenience stores in a quiet neighborhood than for supermarkets in high
streets
Threats
This model is engineered to clock a faster turnover of inventory mdash Reliance expects
consumers to visit the store at least twice a week for their top-up groceries Each store
will have an investment of Rs 50 lakh to Rs 60 lakh Unlike global retailers who operate
on thin margins Reliance Retail is looking at a fairly high-margin business model
Deliberately stopped short of being a full-fledged supermarket rather it has limited
itself to a food and grocery convenience store They also have a threat from the
existing supermarkets which provides all the services to its customers For Example
Food world and Nilgiris also provides food and beverages with other personal careproducts These convince are not existed in the present Reliance retail stores